The borrower owes $14,760.82 at the end of 8 years
What is compounding interest?
Compounding interest means that earlier interest would earn more interest in the future alongside the loan principal.
Note that in this case the loan continues to accumulate interest because there no repayments, in other words, the loan balance after 8 years, which comprises of the principal and interest for 8 years can be computed using the future value formula of a single cash flow(the single cash flow is the principal) as shown thus:
FV=PV*(1+r/n)^(n*t)
FV=loan balance after 8 years=unknown
PV=loan amount=$5,000
r=annual interest=14%
n=number of times in a year that interest is compounded=2(twice a year)
t=loan period=8 years
FV=$5000*(1+14%/2)^(2*8)
FV=$5000*(1.07)^16
FV=$5000*2.95216374856541
FV=loan balance after 8 years=$14,760.82
Find out more about semiannual compounding on:brainly.com/question/7219541.
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Answer:
X=2
Step-by-step explanation:
You can prove the triangle congruent by SAS. First, reflexive property and then isosceles triangle theorem since two side is congruent, the opposite angle is congruent to each other because of that theorem and then cpctc
A) Interest = principal * rate * time
I = (800)(0.05)(3) = $120
b) $800 + $120 = $920 after the three years. $920 * (1 - 0.02) = $901.60.
Not a 100% positive this is the answer but i think it is 2.5
got this by dividing 30 by 12 and got 2.5
